A top Wall Street analyst released a new report stating that he believes Tesla (TSLA) stock could soon rise to $1,000 per share on a ‘green tidal wave’ coming to the US and China.

As we reported last week, a report came out stating that Tesla’s net new orders are crashing in China due to recent bad press in the market.

Dan Ives, analyst at Wedbush Securities, issued a new note to clients about Tesla in which he stated that the electrification of China’s massive automotive market is just starting:

“Taking a step back, only 5% of auto sales in China are EV driven today and we believe this transformational consumer demand will see a doubling of EV deliveries in this key region over the next two years with Tesla a major beneficiary along with domestic pure plays NIO, Xpeng, Li Auto, and others,”

He believes Tesla will benefit from the accelerated electrification of the market in the next few years.

The analyst also notes that the impact of President Biden’s $174 billion plan to accelerate electrification in the US has yet to be realized.

At this point, we don’t even know all the details of the plan.

Ives was actually the first to report that the EV federal tax credit could go up to $10,000 in the reform of the program.

He was actually right since the latest bill proposed to reform the federal EV incentive included an increase to $10,000 for EVs made in the US and to $12,500 for EVs made in the US by union workers.

However, the bill hasn’t gone to a vote yet, and the final form of the EV tax credit reform is still unclear.

Wedbush reiterated a $1,000 per share price for Tesla’s stock.

Ives is one of the top Wall Street analyst according to Tip Ranks, an analyst ranking firm.

The Wedbush analyst ranked #79 out of 7,545 analysts on TipRanks with a 67% success rate and a 32% average return.

Electrek’s Take

I agree with Ives that we haven’t seen anything yet. Tesla’s troubles in China are going to look like child’s play when 40-50% of car buyers are going to be hungry for EVs.

Same thing in the US.

Tesla managed to get 80% of the US market last year without having access to the $7,500 tax credit while most competitors did.

Can you imagine how many it could sell if the buyers had access to a $10,000 incentive? Everything they can make, which is going to be a lot more in the US once Gigafactory Texas starts producing vehicles later this year.

While the automaker has some significant issues that it needs to address, especially when it comes to communications and customer service, any demand concerns are overblown, in my opinion.

Full disclosure: I am long TSLA.

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